2005 Agency Business Report: <strong>PainePR</strong>

Majority owned by Cossette Communication Group

Majority owned by Cossette Communication Group

David Paine, CEO

2004 revenue: $9,387,904

2003 revenue: $7,948,536

Up 18%

Number of offices: Three full-service offices (New York, Los Angeles, and Irvine, CA.) and a start-up operation in San Francisco. Through Cossette relationship, access to four PR offices in Canada via Optimum Public Relations, and in London via Band & Brown Communications.

Staff numbers: 59, up from 48 in 2003

Staff turnover: Less than 15%

Senior hires: Beth Balsam, GM New York joined from Fleishman-Hillard, and Eric Borsum, GM Los Angeles joined from Hill & Knowlton to spearhead cause-marketing and CSR.

Senior departures: Paul Wood, SVP in New York.

What region is growing? Both the New York and Los Angeles operations are growing. Irvine, CA. (Orange County) is relatively flat.

Changes in ownership status: PainePR sold an 80% stake to Canadian-based advertising/convergence-marketing company Cossette Communication Group, becoming the lead PR arm in the United States for this global organization. PainePR LLC is still wholly owned and operated by its longstanding management leadership team.

Practice areas: Consumer products and services; b-to-b products and services; healthcare; convergence entertainment; social marketing; diversity marketing

Which are new? Within thefood and beverage group, PainePR formed a "functional foods" specialty area last year. Additionally, the agency launched social influencer marketing and Hispanic PR practices.

What areas were strong? Influencer Marketing, food and beverage

Key account wins: AOR for Procter & Gamble Baby Care; Enova Oil launch; AOR for P&G's Metamucil brand; Novartis; Ernst & Young's Entrepreneur of the Year Awards business.

Key account losses: Lipton Tea

Dormant that clients started to spend again: XM Satellite Radio came back after being quiet for a period.

Proportion of clients on a retainer: PainePR does not operate on a traditional retainer basis with any clients, and instead has the account-work level dictate the billings on a monthly basis.

Financial performance: Revenues increased more than 17%, and PainePR recorded a 20% EBITDA profit margin.

Outlook: 2004 was a year of change for Paine PR, as the firm agreed to sell an 80% stake to Canadian-based advertising/convergence-marketing organization Cossette Communications Group, becoming the lead PR arm in the US. CEO David Paine says the strategy for success remained the same as it always has been. "In spite of the economy, we've been able to do reasonably well, and I think the reason is that we typically have longstanding relationships with a lot of our clients."

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